Institutional Presentation 3Q FY2017

Transcription

1 Institutional Presentation 3Q FY2017

2 IRSA Commercial Properties (IRCP) at a Glance The leading commercial real estate player in Argentina Largest owner and operator of premium malls and office buildings in Argentina Business Description ~417,000 rental sqm in prime locations Land bank to develop ~335,000 sqm of commercial properties ~ 19-year listing track record on MERVAL and ~ 15-year on NASDAQ GLA Breakdown 1 Ownership Structure As of March 31, By sqm As of March 31, 2017 Office Buildings 10% 6 office buildings ~77,000 sqm Land bank 45% Shopping Malls 45% 16 shopping malls ~340,000 sqm Other 94.61% 5.39% Source: Company Information Note: 1. Mercado de Valores de Buenos Aires 2. GLA: Gross Leaseable Area Total: ~ 752,000 sqm IRSA is a leading, diversified, publicly listed company with presence in real estate and other sectors 2

3 Dominant Position in the Local Shopping Malls Sector Strategic locations of assets has delivered leading market share in Argentina s most important markets Positioned in the Most Attractive Segments of the Population with Leading Positions in Each Market Buenos Aires Area Market Share (as % of 2014 GLA) 1 % Argentina GDP 4 GDP per Capita (US$) 4 67% Market Share Buenos Aires City Neuquen 46% , % ,407 Santa Fe 33% ,170 Cordoba 2 18% ,876 Greater Buenos Aires 10% ,781 Mendoza 56% ,173 Mid Income Area High Income Area Salta 66% 1.0 4,604 Lower Income Area Land reserves Total 18% ,455 Source: Company information, INDEC, Argentine Chamber of Shopping Centers, Government of the City of Buenos Aires Note: 1. Considers commercial, cinema, recreation/entertainment and anchor stores GLA. Excludes supermarket and home centers 2. Excludes Patio Olmos shopping mall which IRCP additionally owns in the province of Cordoba under concession 3. As of September GDP Disclosure by province was discontinued by the Argentine Ministry of Economics in Presented figures are estimated based on latest available information as of

4 Shopping Malls: Operating Figures Shopping Malls Tenants Sales (Quarterly Growth Rate - %) 44,5% 28,5% 28,6% 29,9% 30,0% 27,1% 35,6% 35,5% 31,3% 34,3% 30,1% 36,3% 35,7% 32,5% 29,0% 29,7% 25,4% 29,6% 21,0% 18,6% 19,9% Total Growth Same Shopping Sales IQ 14 IIQ 14 IIIQ 14 IVQ 14 IQ 15 IIQ 15 IIIQ 15 IVQ 15 IQ 16 IIQ 16 IIIQ 16 IVQ 16 IQ17 IIQ17 IIIQ17 Shopping Malls Stock & Occupancy % Summary Main Figures (IIIQ 2017) 98,6% 98,4% 98,4% 98,4% 98,0% Stock (sqm) 2,364 sqm Expansion 2,995 sqm Expansion Mainly Occupancy Sales (ARS) IIIQ16 IVQ16 IQ17 IIQ17 IIIQ17 Visitors 4

5 Unique and Iconic Office Buildings Footprint IRCP owns and operates a unique portfolio of office buildings and presents a strong market position Fragmented market Low tenant concentration Strategic locations in financial district and high-income areas Expanding Corporate North Area AAA Location City of Buenos Aires Back Office Center Business Center Land reserves Source: Company Information, CBRE, LJ Ramos and public filings 5

6 Office Buildings: Main figures Offices Leases USD/sqm/mth & Occupancy 98,6% 100,0% 100,0% 100,0% 93,1% 26,6 25, ,6 25,9 IIIQ16 IVQ16 IQ17 IIQ17 IIIQ17 Offices Stock (sqm) 62% 95,002 79,048 77,252 Polo Dot 32,000 sqm 125,264 Catalinas Sale of 1,796 sqm 16,012 USD 6.3 MM (Office Portfolio acquisition) IQ17 (USD/sqm 3,700) IIIQ17 Projected FY20 80% potential increase in EBITDA (From USD 19.5 million to ~ USD 34 million) * Source: LJ Ramos Estimated Market Share*: 12% 6

7 Best in class management team with a clear business strategy translates to a unique brand 1 - Differentiated Business Model Acquire Develop Operate Administrate Commercialize 2 Experienced Management Team More than 25 top managers accumulating 340 years of experience in the real estate industry 3 - Strong Relationship with Tenants Long standing relationship with local and international tenants Top of mind shopping mall brand (86% awareness) mm visitors (2.6x Argentine population) 2 Last 3 shopping malls opened with more than 98% occupancy 3 Different awards received for real estate operation and development and architecture design Source: Company Information Note: 1. Corresponds to Top of Mind in CABA trade area accounting for Alto Palermo (36%), Abasto (36%) and DOT (14%) 2. As of FY2016,. Considers every time someone access each of the shopping malls. Counted based on camera system 3. Considers opening of Alto Comahue, Distrito Arcos and Dot initial occupancy weighted by sqm 7

8 Organic Growth Initiatives could significant increase IRCP s Commercial Real Estate Portfolio Attractive Shopping Mall Pipeline as Well as Office Buildings Shopping Malls GLA ( 000 sqm) Office Buildings GLA ( 000 sqm) 2.0x 1.7x Current GLA Under execution & starting in 2017 Potential Growth Current GLA Projects to start in 2017 Potential Growth Existing Shopping Malls New Development Current Malls expansion New developments Current GLA Source: Company Information 8

9 Attractive Development Pipeline Shopping San Martín ~ 35,000 sqm Polo Dot: U Building + Mall Expansion Shopping Tucumán Shopping Tucumán ~ 10,000 sqm Shopping Paraná ~ 5,000 sqm Polo Dot: Two Office Towers Shopping Caballito ~ 68,000 sqm Intercontinental Plaza II ~ 20,000 sqm Office Intercontinental II ~ 22,000 sqm Current malls Expansions 115,000 sqm GLA Source: Company Information 9

10 Capex: Alto Palermo Expansion Alto Palermo Expansion Project (Palermo BA City) Food Court Moving to 3rd level & restyling ~ 4,000 sqm new GLA ~ USD 28.5 million investment Construction Works (Current Picture) Fully developed (future picture) Est. Opening FY2019 Alto Palermo Tenant Sales USD/sqm/mth 1, Alto Palermo Avge IRCP Portfolio Stabilized EBITDA ~ USD 4 to 6 million 10

11 Capex: 1 st Stage POLO DOT project Polo Dot Office Building (North Area BA City) The first Office Park in Buenos Aires ~ 32,000 sqm GLA ~ ARS 1,000 million Construction Works (Current Picture) Fully developed (future picture) Est. Opening FY % of the building already leased Stabilized EBITDA: ~ USD 8 10 million 11

12 Capex 2017: Project POLO DOT (1º stage) Master Plan Polo Dot 2 stage Dot Building Dot Baires Mall 1 stage 2017/2018 ~ USD 65 MM 2 stage POLO DOT Full Project 5 years ~ 68,400 sqm of GLA 12

13 Capex: Catalinas Office Project Catalinas Office Building (BA City) ~ 35,000 sqm GLA (16,012 sqm owned by IRSA CP) ~ USD 101 million total investment (45% made by IRSA CP) Construction Works (Current Picture) Fully developed (future picture) Leases USD/sqm/mth (Source: L.J Ramos) Catalinas Avge A+ BA Market Stabilized EBITDA ~ USD 5 to 7 million 13

14 IRSA Commercial Properties Other Assets Overview Residential Projects Credit Card Services Tarjeta Shopping IRSA Commercial properties also owns a 20% equity stake in Tarshop S.A. It offers credit card services through Tarjeta Shopping and Tarjeta Shopping Metroshop E-commerce Avenida.com IRSA Commercial properties also owns a 17.3% equity stake in Avenida.com. E-commerce company created in 2013 Fair and Exhibitions Center La Rural IRSA Commercial Properties owns an indirect 35% equity stake in La Rural S.A., whose main asset consists on right of use on the Predio Ferial de Palermo, one of the main centers of fairs and exhibitions in Argentina Residential Real Estate Astor Palermo: Units received from barter agreements US$ 18.9 million TGLT (9.5% equity stake) TGLT is a residential housing developer with operations in Argentina and Uruguay Source: Company Information 14

15 Financial Information

16 Resilient Revenue Model Proven to act as a hedge against inflation and devaluation Shopping Centers Office Buildings Revenue from Leases Revenues from Leases In Advance % Sales Brokerage Fee Avg. 3x monthly base rent % Sales % Sales US$ US$ US$ Admission Rights Avg. 6x monthly base rent Base Rent Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Other Revenues 3-Year average term US$ denominated tenant agreements Non Traditional Advertising Source: Company Information 16

17 Financial Overview 9MFY17 Revenues by Segment (ARS million) +27.8% +48.3% Adjusted EBITDA* by Segment ARS million +28.0% +2.8% 1,734 2,216 1,340 1, % (**) Shopping Centers Offices Shopping Centers Offices 9M FY16 9M FY17 9M FY16 9M FY17 EBITDA Margin by Segment - % EBITDA Breakdown Shoppings Offices 12,1% 9M % 79.1% (**) 9M % 73.2% var YoY +0.1 pp +5.9pp 87,9% Shopping Centers Offices (*) Operating income + D&A excluding changes in the fair value of investment properties + realized results from the change in fair value (**) Excludes the ARS 44 milion gain resulting from the business combination Entertainment Holding S.A, which is indirect holder of 35% of La Rural S.A and realized results from sold properties 17

18 Consolidated Debt as of March 31, 2017 Debt Description (USD million) Description Issue Currency Outstanding Amount (US$ million) Rate Maturity Series II Notes due 2023 (int.) US$ % mar-23 Short-term debt ARS 1.6 Variable < 365 days Other Loans Total IRSA CP s Debt IRSA CP s Net Debt Debt Ratios Current Debt Amortization schedule (USD million) Net Debt/EBITDA LTM 1.3x Loan to Value 2 14% 360,0 1,6 0, Notes 1. Net Debt less cash & equivalents, short-term financial current investments, a loan with a subsidiary of IRSA 2. Gross Financial Debt over Total Assets 18

19 Strong Cash generation Free Cash Flow - USD Million EBITDA 1 CAPEX 2 Taxes FCF 3 FY12 FY13 FY14 FY15 FY16 Dividend Payment USD Million ~ New Dividend paid (Ab-17) ARS 310 million ARS/share 2.46 ARS/ADR 9.84 Record Date: Ab-17 Payment Date: Ab-17 Dividend Yield: 1.3% FY 12 FY 13 FY 14 FY 15 FY16 9M17 (1) EBITDA: Operating Income plus Depreciation and Amortization excluding stamp expenses incurred in the transfer of assets. (2) Includes acquisition of Property, Plant & Equipment and Acquisition of investment properties (3) FCF (Free Cash Flow): EBITDA minus Capex, minus Taxes. 19

20 Thanks